2_Title Slide

New Technical Resources to Enhance Energy Efficiency in Multifamily Housing: Green Physical Needs Assessments and Tools Moderator: Trisha Miller, HUD Panelists: Chrissa Pagitsas, Fannie Mae; Jennifer Somers, DOE; Theodore K. Toon, HUD

2 | Energy Efficiency and Renewable Energy eere.energy.gov

DOE Multifamily Energy Upgrade Technical Tools and Resources

Jennifer Somers Senior Policy Advisor Team Lead for Training and Technical Assistance Weatherization Assistance Program

Better Buildings Summit

May 9, 2014

eere.energy.gov

WAP Multifamily Energy Upgrade Process

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DOE Multifamily Technical Resources

The WAP Multifamily Energy Upgrade Core Principles Select the correct improvements for the individual building to maximize energy savings and ensure occupant comfort and health …Doing the Right Things Ensure that the selected improvements are installed by qualified contractors according to nationally accepted standards ...Doing Things Right

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eere.energy.gov

Defining the Work. Communicating

Expectations of the Work.

Inspecting the Work.

Training Individuals to do the Work.

DOE Multifamily Technical Resources

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Standard Work Specification Development

a

Built Upon Years of Experience. The SWS synthesize more than 30 years of Weatherization Assistance Program (WAP) building science expertise within the WAP and the broader home performance industry. The SWS combine original content and relevant codes and standards to identify desired outcomes of quality home energy upgrades. Engaging Hundreds of Industry Leaders. The project engaged more than 400 subject matter experts including weatherization professionals, industry technical leaders and other highly qualified individuals to develop the SWS. During this process, more than 2,000 public comments regarding the SWS were reviewed. Provides an Industry Baseline. The SWS serve as a universal resource for the home energy upgrade industry, giving residential contractors, utilities, homeowners, investors and others a baseline for quality in residential energy upgrades. Regular Maintenance. The SWS Maintenance Committee will meet in April, 2014 and continue to provide regular updates to the SWS based on industry feedback.

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…we can figure out what a worker needs to know to do the job right

Once we know what the work is…

Knowledge, Skills, Abilities

Job Task Analysis

Multifamily Energy Auditor Multifamily Building Operator Multifamily Retrofit Project Manager Multifamily Quality Control Inspector

Guam

Hawaii

American Samoa Virgin Islands

TX

OK NC

NM AZ

UT CO K S

CA

NV

ID

OR

W A

W Y

MT

SD

NE

MN

IA

WI

MI

IN

OH

LA

MS

A

TN

GA AL

K Y

FL

SC AR

V A

NY

DE NJ

MD

CT

DC MO

IL

P A

AK

Puerto Rico

Northern Mariana Islands

ND

WV

RI

MA

VT NH

MULTIFAMILY TRAINING AND DELIVERY RESOURCES

National

Wx Training Centers

Regional

Local

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Section 4: Resources ACCREDITED WEATHERIZATION TRAINING CENTERS

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Guidelines for Home Energy Professionals

• SWS define the minimum requirements for high-quality, safe, and durable installations

• References to industry technical standards and codes

Define the Work

Validate the Training

Certify the Worker

• Certifications accredited under ANSI ISO 17024 standard – Energy Auditor, Crew Leader, Quality Control Inspector, Installer

• Based on JTAs and KSAs; also incorporates SWS • BPI selected to initially administer certifications • Competency-based; only home energy upgrade certifications

supported by DOE accredited by ANSI

Goal: Collaborate with industry to develop the tools needed for a high-quality residential energy upgrade industry supported by good training and a skilled and credentialed workforce.

• JTAs for four common single-family and multifamily job classifications

• Outlines key tasks and knowledge, skills, and abilities needed • Voluntary training program accreditation through IREC

Goal: Collaborate with industry to develop the tools needed for a high-quality residential energy upgrade industry, supported by accredited training programs and a skilled and credentialed workforce.

Learn more at wip.energy.gov/guidelines.html

eere.energy.gov

DOE Multifamily Technical Resources

Summary: Available Now!

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Standard Work Specifications for Multifamily Energy Upgrades • The SWS are a detailed and comprehensive catalog of energy efficiency upgrade measures

containing the minimum technical specifications required for those measures to achieve their intended outcomes.

• http://sws.nrel.gov Multifamily Job Task Analyses (JTA) • Retrofit Project Manager, Energy Auditor, Building Operator, and Quality Control Inspector. • http://www.energy.gov/eere/wipo/guidelines-home-energy-professionals-accredited-training

Home Energy Professional (HEP) Certifications: Single-Family • The only home performance certifications that meet American National Standards Institute

(ANSI) accreditation under ISO 17024 • http://www.energy.gov/eere/wipo/guidelines-home-energy-professionals-certifications

Weatherization Training Centers • http://www.waptac.org/State-WAP-Training-Centers.aspx#State

Accredited Multifamily Training • http://www.energy.gov/eere/wipo/guidelines-home-energy-professionals-accredited-training

eere.energy.gov

DOE Multifamily Technical Resources

Resources: Coming Soon! Multifamily Tool for Energy Audits (MulTEA) • MulTEA will produce an investment grade audit (ASHRAE Level 2) and provide

auditors with an improved energy simulation and weatherization measure selection tool for multifamily buildings.

• A major innovation of the tool is building energy use can be calibrated against historical weather data that prevailed during that utility billing period.

Technical Guidelines for Multifamily Building Energy Audits • The Technical Guidelines tell the energy auditor what the data-gathering and

energy-auditing process should entail. • The guidelines facilitate uniformity in multifamily energy audit methods, to lead

to more accurate predictions of energy and cost savings. Multifamily Certification Schemes • Retrofit Project Manager and Quality Control Inspector. • License template for ANSI-Accredited certifying bodies.

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eere.energy.gov

Guidelines Project: Foundation for Quality

The Guidelines project is a collaboration between DOE and the home energy performance industry that empowers the WAP and private industry to deliver consistent, high-quality work that results in reduced energy costs and improved comfort in homes across America.

"The fact that there is an online resource that includes very detailed work specifications, and to be able to just click and choose whichever ones we want to use and then include them in our handbook, is just phenomenal for us. This cut our workload considerably — maybe by more than half.”

- Jaime Gomez, Coordinator for Austin Energy’s Multifamily Rebate Program

“I do a lot of tech work on a daily basis. I want to get better at what I do, so I can deliver the best work for my customers. It’s great that the Home Energy Professional Energy Auditor certification recognizes that. It will give people in the industry a higher bar to reach for.”

- Building Analyst with TerraLogos Energy Group in Baltimore, Maryland

“Southface Energy Institute is dedicated to providing best-in-class learning experiences to building professionals through classroom, hands-on, and in-field training in weatherization and energy efficiency techniques. The IREC ISPQ Accreditation provides both a method to demonstrate this commitment and a standard by which continuous improvements can be tracked.” - Dr. Sydney G. Roberts, Home Services Program Manager for Southface Energy Institute

eere.energy.gov

DOE Multifamily Technical Resources

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Jennifer Somers

Senior Policy Advisor Team Lead for Training and Technical Assistance

Weatherization Assistance Program Jennifer.Somers@ee.doe.gov

15 © 2011 Fannie Mae. Trademarks of Fannie Mae.

2014 Better Buildings Summit: Fannie Mae Multifamily High Performance Building Module

May 9, 2014

© 2014 Fannie Mae. Trademarks of Fannie Mae.

16 May 2014 | Fannie Mae Multifamily High Performance Building Module

Fannie Mae Mission and Portfolio Fannie Mae provides liquidity, stability and affordability to

the secondary mortgage market Fannie Mae’s Multifamily Portfolio contains loans having an

aggregate unpaid principal balance of $199B as of YE 2013

Our portfolio includes 36,000 multifamily properties, representing 3.6M rental units Includes Market Rate, Affordable Subsidized and

Affordable by Area Median Income (AMI) properties We hold 20% of U.S. Multifamily Mortgage Debt

outstanding¹ Fannie Mae Multifamily has provided liquidity, stability and affordability to the

multifamily market for over 25 years. ¹ Based on the Federal Reserve’s December 2013 mortgage debt outstanding release, the latest date for which the Federal Reserve has estimated mortgage debt outstanding for multifamily residences.

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Typical Energy & Water cost savings opportunities

May 2014 | Fannie Mae Multifamily High Performance Building Module

18 May 2014 | Fannie Mae Multifamily High Performance Building Module

HPB Module: Energy & Water Audit Requirements HPB firms must conduct an ASHRAE Level II-compliant

building audit and assess for both energy and water saving measures in the: Building Envelope Heating, Ventilation, and Cooling Systems Domestic Hot Water Systems Lighting Systems Appliances Domestic Water and Irrigation Systems Other energy-consuming and water-consuming

systems or components

PNA/HPB firms must ensure that the Lender clearly understands the capital costs associated and cost savings with each cost-saving

measure for loan sizing and underwriting purposes.

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Detailed Energy & Water Efficiency Measures (EWEMs) The following data points must be included for each EWEM: Projected Annual Energy or Water Cost Savings For the Property For the Owner For the Tenant’s

Installed Cost of measure • Include development, design and other soft costs as appropriate • Include costs for commissioning and verification

Owner’s Return on Investment (using owner’s projected savings) Simple Payback (using owner’s projected savings) Estimated Use Life of EWEM Life Cycle Cost Analysis (show calculation and inputs)

May 2014 | Fannie Mae Multifamily High Performance Building Module

PNA/HPB firms must follow the Instructions document’s templates for reporting EWEM information.

20 May 2014 | Fannie Mae Multifamily High Performance Building Module

Provider Timeline

Lender engages PNA/HPB Provider Firm(s)

Firm(s) receive copy of

property’s energy and

water bills for last 12 months

Firm(s) assess property

conditions per PNA and HPB requirements

Firm(s) deliver the quality-

assured single report to the

Lender for use in underwriting the

M-PIRE Loan

Once the firm(s) is engaged, the combined PNA and HPB report is expected to be delivered within 3-5 weeks.

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Fannie Mae’s Available Green Financing: GRP & M-PIRE Terms Green Preservation (GPP) NYC Multifamily Property

Improvements to Reduce Energy (M-PIRE)

Benefits

Provides up to 4-5% in additional loan proceeds

Max LTV: up 85%

Provides up to 4-5% in additional loan proceeds

Max LTV: up 85% Maintains 1.25x DSCR by

underwriting up to 50% of projected energy and water savings

Underwriting Requires PNA and High Performance Building Module (ASHRAE Level II Energy Audit)

Asset Management

Complete retrofits within 12 months of loan close Report annual energy and water cost/consumption in ENERGY STAR

Securitization All loans securitized. MBS is disclosed to investor as “Green MBS”.

Restrictions Multifamily Affordable Housing only

Limited to NYC’s 5 boroughs Conventional, Affordable and

Coops allowed; no military or student housing

May 2014 | Fannie Mae Multifamily High Performance Building Module

Better Buildings Summit

Ted Toon Director, HUD/FHA Multifamily Production

May 9, 2014

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New Technical Resources to Enhance Energy Efficiency in Multifamily Housing:

Green Physical Needs Assessments

At HUD: • “CNA eTool” is in development • Interagency effort: Rental Policy Working Group

• U. S. Departments of HUD, USDA, Treasury • Standard template, use by multiple agencies and programs • Free and publicly available • Builds off best practices of CNAs in use today

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CNA eTool

• Other HUD CNAs, including M2M >>> GRP >>> RAD • Electronic collection and submission, published data

standard • Baseline utility consumption data collection,

benchmarking • ASHRAE Level II energy audit incorporated, where

required • Analytics on cost/benefit, payback, early replacement • Data, analytics, recommendations = better choices

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CNA eTool • Potential incentives as part of implementation:

• Underwriting of projected savings • Potential impact on property valuation

• Independent study on 200 GRP properties: • Overall utility savings in excess of 20%, on average • Allowed underwriting at 50% of projected savings • Achieved 64% of projected savings • Energy-saving measures savings-to-investment ratio of 1.2

(discounted life cycle savings divided by initial investment) • Actual vs projected savings consistent with Deutsche Bank’s

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CNA eTool • CNA eTool currently in development • Testing over the summer • 9/30/2014 completion • HUD Multifamily programs requiring CNAs will

migrate to use of CNA eTool • FHA Mortgage Insurance applications • Multifamily Asset Management Programs • Preservation Programs (Mark to Market, Rental Assistance

Demonstration (RAD))

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New Technical Resources to Enhance Energy Efficiency in Multifamily Housing:

Green Physical Needs Assessments

HUD CNA eTool Project Contacts: • David Wilderman, David.B.Wilderman@hud.gov (202) 402-2803

• Ted Toon, Theodore.K.Toon@hud.gov (202) 402-8386

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